The Wednesday before Thanksgiving has a good track record of success, but it isn't working very well today. I suspect that the straight up run up since the election created a "sell the news" type reaction. Instead of chasing some new speculative junk, market players are protecting gains that they already had. It didn't help that Eli Lilly (LLY) and Juno Therapeutics (JUNO) surprised the drug and biotech sectors with bad news.
Overall, breadth isn't bad -- with about 3,000 gainers to 3,500 losers. There are over 700 stocks making new 12-month highs and the iShares Russell 2000 ETF (IWM) is on track for a record-setting streak of positive days.
I'm still hunting for some holiday movers, but I'm not finding much. Fate Therapeutics (FATE) , which I mentioned yesterday, is working higher -- and old favorite Lantheus Holdings (LNTH) is coming back after doing a spot secondary last week at $9.20.
Oil stocks aren't moving very well, although crude has regained most of yesterday's losses. I suspect buyers are worried about more OPEC games over the holiday weekend and are not interested in adding exposure.
What is most surprising about the market is the continued rotation into small-caps. The FANG names are all in the red while the IWM is making fresh all-time highs. It is hard to not be at least a little worried about a slowdown in seasonality next week.
I don't try to call market turns, but the air is very thin up here and I'm finding little to buy. I'm still bullish, but I'm looking over my shoulder to see if there are some bears sneaking up on us.